The Legalisation Prospects of The Brazilian Betting Market Amid the Pandemic
In December 2018, Brazil had its fundamental betting law finally authorized. Since then, the industry in the country has gone through the adaptation process, waiting for the regulatory framework to stabilize. With the steady development of the events, the global pandemic caught the local industry by the storm. At the same time, Brazil remains a prospective market in the future, despite some vivid inconveniences caused.
The specialists from 2WinPower are eager to share with you our view on the gambling situation in the country, its potential, possible successful product, and marketing strategies. Apart from that, we are always ready to assist you in developing your gaming business in this region, as the help of the experts is a guarantee of a lucrative product at the end.
When we talk about the apprehension why the regulation of the local market after a pandemic will be an ultimate success, everything is simple here. With the total population of more than 210 million people, there are almost 206 million phone subscriptions. It gives a whopping 97% technological penetration rate that offers an ideal background for mobile gambling. Apart from that, 150 million Brazilians are already using the internet for different purposes.
Further calculations show that 94% of internet users aged 16 to 64 have a smartphone, and 73% of web consumers have a laptop or desktop. Moreover, considering that a daily internet usage of these age categories is 9.9 hours, the acquisition rates can turn out to be really high.
The lack of financial tools necessary for integrating the online business can be one of the possible obstacles that an operator can face when settling down in Brazil. 33% of the local population has a credit card, while only 18% of the country’s inhabitants make online purchases or pay bills online. Admittedly, these are not the worst numbers, compared to some other LatAm countries.
Another question that is worth discussing considering Brazilian gambling is the form of regulation.
The chairman of BroBet particularly highlights:
The local federal law is a significant advantage for many operators. Other countries have been working on this type of regulation for already several years. At the same time, Brazilian gambling-oriented operators are going to receive decent advantages from this that they are looking forward to obtaining.
Nowadays, Brazil is probably going to face one of the most substantial challenges in the economy after the quarantine is over. Unfortunately, the local congress today is busy discussing the matters related to the Coronavirus to handle the impact on the social aspect of life. At the same time, the government is slowly getting to the point where legalising betting will be closely related (or even united) with installing the gambling regulations in general.
The president of the tourism commission in the Brazilian Chamber of Deputies underlines the necessity of legalisation:
One of the main urgent issues that require legalisation of sports betting is the severe decay of Brazilian football. A lot of local professional clubs had already had financial problems before the pandemic. Now, some of them are even on the verge of extinction.
At the same time, the major obstacle on the way to installing betting regulations concerns religion. Different groups are entirely against this activity as an officially supported one by the government, preventing a smooth implementation of laws into the economy.
Nowadays, Brazilian authorities have two significant challenges regarding the gambling business:
- Regulate the federal lottery that has been operating in the country since the 1960s.
- Regulate the sports betting business.
Again, the first big step for dealing with the local bookmakers’ business was made in December 2018, when the federal was implemented. After this, the Ministry of Economy proposed three public consultations with more than 3,000 contributions from the stakeholders.
The conclusion was simple. More time was needed to identify the best practice around the world. It was all because Brazilian authorities did not have a final position on how to regulate the betting industry. The biggest issue was the inability to combine the lottery business with betting, first of all, because of the turnover and the GGR taxation aspect.
In 2020, we took a step back and defined a model of how we will deal with the public service of sports betting. This was necessary since the federal law was saying there must be a modulation of the concession based on the best possible practice,
— explains the technical manager at SECAP within a Ministry of Economy.
The local authorities are predicting that the entire process of regulating the Brazilian betting market can take up to 4 years. At the same time, the operators feel a bit more positive about it. The first possible results are expected to be implemented in 2021.
The main issue about not regulating online betting in the country as quickly as possible is about the decay of the progress. Nowadays, the local operators have several struggles with the payment methods mainly, preventing them from getting the maximum income from the gambling industry.
The quicker the regulation question is to be resolved, the more benefit, both from authoritarian and from the operators’ side, will be received by all participants of the process,
— specifies the managing director at Betsson.
Even though the bookmakers’ industry is still without a bright future, you can always start working towards acquiring a profitable gambling platform in the country. The technological involvement of the local population creates quite lucrative possibilities to launch your own gaming website and prepare it for the betting legalisation.
The experts from 2WinPower will gladly provide you with any assistance you might need up to ordering a turnkey online casino from scratch. It is the perfect opportunity to start your gambling business in Brazil and wait for complete legalisation of the betting sphere, as all the necessary conditions already exist here:
- massive involvement of the local population in internet technologies;
- the necessity of thematic support for the local sports club;
- the authoritative desire to finish the betting legislation alongside the lottery business;
- the operators’ influence on the local industry, encouraging the government to speed up the betting legislation process.
If you might have any questions on Brazilian betting or are just eager to start working on creating a gambling business in this country, feel free to ask our support team: